Exam 28: Limited Liability Companies and Special Business Forms

Commerce & Trade Corporation and Distance Shipping & Transport, Inc., form a business trust. eCharge Auto Company and Fleet Electric Corporation form a joint stock company. Green AgriCorp and Harvest Farms, Inc., form an incorporated cooperative. What features do these combinations of business organization have in common?

In many states, an operating agreement is required for a limited liability company to exist.

Lauren, Marcella, and Norell form a syndicate to buy a professional soccer franchise. This syndicate could be set up as

Dreem Land Corporation and Earthbound Investments Company transfer their property to Financial Managers, Inc., which manages the property and distributes the profits to Dreem and Earthbound. This form of a business organization is​

A joint stock company is usually treated like a partnership.

The members of a limited liability company have unlimited liability for any loss or injury caused by the wrongful acts or omissions of the firm.

Bee Hive Honey, LLC’s members include Chad, Dolores, and others. For purposes of suing and being sued, Bee Hive Honey is

Greenway Corporation and Happy Trails, Inc., combine their efforts to build a network of biking and hiking trails along an unused railroad spur. Their form of business organization is

Limited liability companies are entities apart from their owners.

Jeri and Knute are members of Lighthouse Tours LLC, a limited liability company. With respect to Lighthouse Tours’s liability, as members, Jeri and Knute are shielded from

Business Media, a partnership, publishes periodicals, including Cycle Review. DangerZoners, also a partnership, publishes Extreem Sportz. Business Media and DangerZoners agree to pool their resources in a one-time deal to print and market a book, Future Runs. In contracting with Geo Cache, Inc., for supplies to print the book, Business Media commits fraud. In contracting with HostArticles Agency for materials to use in Extreem Sportz, DangerZoners commits fraud. Geo Cache and Host Articles file suits against Business Media and DangerZoners. What type of business organization has Business Media and DangerZoners formed? To whom, if anyone, is Business Media liable? To whom, if anyone, is DangerZoners liable?

Arnie is a member of Bowling & Billiards, LLC. Arnie can participate in the firm's management

A limited liability company that has two or more members can be taxed as a corporation.

Medical Professionals Supply Source is an unincorporated cooperative. Unincorporated cooperatives are often treated like

A limited liability company is a citizen of every state, regardless of the citizenship of its members.

Most courts apply the same principles to joint ventures as they apply to partnerships.

Limited liability companies (LLCs) are governed by federal LLC statutes.

Limited liability company operating agreements can provide whether formal members' meetings will be held.

Rafaela Art Gallery and Sequoia Exhibitions form a joint venture. When a dispute arises, Rafaela files a suit against Sequoia. The court is most likely to apply the same principles to this joint venture as it applies to

When a limited liability company is dissolved, any member, including those who wrongfully dissociated, may participate in the winding up process.